Then the total value of the currency should be equal to the total value of all the wealth in the world. Current estimates of total worldwide household wealth that I have found range from $100 trillion to $300 trillion. With 20 million coins, that gives each coin a value of about $10 million.
Household wealth is mostly real estate deeds, stocks, bonds, bank accounts… There isn’t much cash floating around. For instance, the U.S. Treasury estimates there is only about $1.1 trillion of American currency in circulation (which may not account for destroyed bills, I’m not sure).
(which may not account for destroyed bills, I’m not sure).
The descriptions of M0 I see include holdings by the Federal Reserve of notes, and they seem to have a good handle on actively destroying degraded notes (http://www.federalreserve.gov/faqs/how-long-is-the-life-span-of-us-paper-money.htm), so I assume it does account for the destruction of old notes and printing of fresh notes to give a net M0. It wouldn’t make much sense to count destruction but not creation, or creation but not destruction, or neither (since the first two guarantee an increasingly inaccurate M0 and the latter could cause accuracy issues if destruction were not pegged exactly to creation).
Household wealth is mostly real estate deeds, stocks, bonds, bank accounts… There isn’t much cash floating around. For instance, the U.S. Treasury estimates there is only about $1.1 trillion of American currency in circulation (which may not account for destroyed bills, I’m not sure).
The descriptions of M0 I see include holdings by the Federal Reserve of notes, and they seem to have a good handle on actively destroying degraded notes (http://www.federalreserve.gov/faqs/how-long-is-the-life-span-of-us-paper-money.htm), so I assume it does account for the destruction of old notes and printing of fresh notes to give a net M0. It wouldn’t make much sense to count destruction but not creation, or creation but not destruction, or neither (since the first two guarantee an increasingly inaccurate M0 and the latter could cause accuracy issues if destruction were not pegged exactly to creation).